Bitcoin Market Trading – Technical Analysis – BullBear Analytics

1.) What is Bitcoin?

“Bitcoin is a digital asset and a payment system invented and created by an unidentified programmer, or group of programmers, under the name of Satoshi Nakamoto. Bitcoin wasgoed introduced on 31 October 2008 to a cryptography mailing list, and released spil open-source software te 2009. There have bot various claims and speculation concerning the identity of Nakamoto, none of which are confirmed. The system is peer-to-peer and transactions take place inbetween users directly, without an intermediary.

“Bitcoins are created spil a prize for payment processing work ter which users offerande their computing power to verify and record payments into a public ledger. This activity is called mining and miners are rewarded with transaction fees and freshly created bitcoins. Besides being obtained by mining, bitcoins can be exchanged for other currencies, products, and services. When sending bitcoins, users can pay an optional transaction toverfee to the miners.”

Two.) Technology

Transaction record keeping via a “blockchain” and Proof of Work mining are at the heart of the technological advancements introduced to the world by bitcoin. Not only do thesis features permit for bitcoin to function on a day to day onderstel, but they also keep stakeholders’ incentives aligned almost 100% of the time without an intermediary, authority, or third-party of any zuigeling. This is unprecedented te human history. For more detail on the specifics of thesis two chunks of technology wij terugwedstrijd to Wikipedia. Wij’ll embark with what the blockchain is:

Three.) Bitcoin Markets

Bitcoin is still by far the most widely traded and most liquid cryptocurrency ter existence. Altcoin exchanges use it spil a reference currency for almost all trading pairs, and there are many fiat to bitcoin exchanges and wallets around the globe. Bitcoin is considered the on-ramp into the crypto economy, and conversely is considered an uitgang point for fiat currencies. Some of the thickest bitcoin exchanges are listed below, Coinbase and BitStamp, but there are numerous other places to trade it if thesis are unavailable te your area.

Four.) Bitcoin Trading

Ter terms of price activity, Bitcoin acts very well on all timeframes. Both scalp and sway trades off of local and regional highs and lows can be profitable for those with agility and objectivity, while longer term traders will find the slower act (relative to altcoins) welcoming. BBA has bot covering Bitcoin since it began having a market price te 2010, and has executed on many very advantageous setups on both the long and the brief side overheen the past few years so our familiarity with this coin and its markets is truly unmatched.

Five.) Bitcoin Charts & Technical Analysis

The primary voertuig via which all technical analysis is performed is known spil the chart. A market chart simply tracks price movements overheen a specified period of time. Below is an example of the most common type of financial chart, the candlestick chart.

Let&rsquo,s embark by defining terms which are often misused so that wij are all embarking from the same place. Support levels (lines) are prices at which there should be a floor underneath the market due to buyers clustering around historically significant levels. Resistance refers to price levels at which there should be a ceiling on the market spil sellers tend to cluster around historical levels above the current market price. When wij refer to trend, wij are simply talking the direction te which the market is heading overheen a specific timeframe (think back to our discussion on Timeframe). The market can either be moving from the lower left to the upper right on the chart (bullish), from the upper left to the lower right (bearish), or within a range inbetween support and resistance levels.

6.) Conclusion

Despite its older heritage and relatively languid price activity recently, bitcoin remains the undisputed champ of the cryptocurrency markets until further notice. It’s large and consistent liquidity, diverse exchange ecosystem, ordinary yet admirable foundations, and technical obedience all make bitcoin the best candidate for investors and traders looking for a more traditional market within this frontier space. You still get outsized opportunities on both the long and the brief side while liquidity spikes become less common due to trading volumes, all of which makes trading bitcoin for profit one of the fastest growing segments of the trading industry. Wij think there is nothing but growth ahead for this asset, and other assets like it, which is why wij have made it a career covering it te detail.

Subscribe to BullBear Analytics today to see how wij apply thesis principles to everyday act te the cryptocurrency markets, and to find out what makes our success so sustainable.